September, 2018 (Volume: 35 / Issue: 9)
In Focus

Nautilus 27010 Women's Blue and Green Athletic Toe Work Shoes - Blue Composite Toe - N2154 ddd4acf
Nautilus 27010 Women's Blue and Green Athletic Toe Work Shoes - Blue Composite Toe - N2154 ddd4acf -

Einhorn ... blasting frackers

Greenlight’s Einhorn slams oil frackers for burning cash

The hedge fund manager, who often unveils short-bets against companies at these events, cited Pioneer Natural Resources as a particular offender

BILLIONAIRE hedge fund manager David Einhorn, who often moves a stock simply by speaking its name, kicked off the year’s most prominent investment conference by laying out a case against oil frackers, arguing these companies drill “lots and lots of holes” and burn through plenty of cash.

Einhorn, who often unveils short-bets against companies at these events, cited Pioneer Natural Resources as a particular offender at the 20th annual Sohn Investment Conference. “We call it the motherfracker,” he said, prompting investors to kick the share price down as much as 5.3 per cent. The company should trade closer to $78 a share, he said, not the $166.50 the stock is trading at now.

“Pioneer is burning cash and its reserves are not growing,” said Einhorn, who runs $11 billion Greenlight Capital, adding “Pioneer ought to stop touting estimates based on stale pricing.” The company is losing 20 cents of present value for every dollar it invests.

Einhorn also mentioned EOG Resources, which he called the “father fracker,” Concho Resources, Whiting Petroleum and Continental Resources.

Last year Einhorn unveiled a short bet against athenahealth at a previous Sohn conference and was the first to underscore problems at Lehman Brothers months before the investment bank filed for bankruptcy.

Einhorn was one of the few investors at the conference who unveiled a short bet, as most other investors put forth ideas that investors can buy and hold.

Leon Cooperman and David Tepper talked about markets and sought to soothe investors fearful that the long-running equities bull market might be over.

Tepper, founder of Appaloosa Management, shocked markets a year ago by warning that investors should not be too long in the stock market. He said that investors should not be “too long bonds, not too short stocks” and warned that investors should be careful with commodity investments.

Investors at this conference, even the billionaires, are told to keep it short and talk no more than 15 minutes. Tepper who didn’t use all of his time joked that he would sell some of his unused minutes to Bill Ackman, who is known for speaking at a breakneck pace to race through dozens and dozen of slides.

Cooperman, who runs Omega Advisors and has long been saying the stock market would continue to climb, stuck by his bullish outlook, saying the stock market can still end higher this year. “If there is a bubble out there, it is not in the stock market,” Cooperman said, adding it may be in the fixed income market.

He pitched a handful of US-based companies including Google, Dow Chemical, Priceline Group and drugmaker Actavis.
Picking up on the pharmaceutical industry theme, Larry Robbins, who runs Glenview Capital Management, touted AbbVie, saying the stock price could double. The company’s price is relatively cheap and management is disciplined, Robbins said.

Even though AbbVie called off a planned $55 billion takeover of Shire late last year, industry analysts are still holding out forecasts that the breakneck pace of mergers and acquisitions in the pharmaceutical industry will continue. The company could be taken over or it could be the one taking over someone else, Robbins said.

Ackman, founder and chief executive of Pershing Square Capital Management LP, talked about his most recent addition to the portfolio: Canadian pharmaceutical company Valeant Pharmaceuticals International Inc VRX.TO, which he called “massively undervalued.” He said companies that buy up others at a steady pace are often misunderstood and said Valeant, which announced plans to buy Salix earlier this year, is an early stage Berkshire Hathaway, referring to Warren Buffett’s company.

Keith Meister, a former Carl Icahn lieutenant who now runs $8 billion Corvex Management, focused on fast food restaurant chain Yum Brands, saying his firm is one of the five largest investors and that the company is Corvex’s second-biggest investment ever. Daniel Loeb’s Third Point said it had taken a significant stake in Yum.

Nautilus Women's Electrical Hazard Athletic Work Shoes - Composite Toe GreenFitFlop Women's Gogh PRO Superlight Medical Professional Shoe, Dusky Pink, 5 MGeorgia Boot Women's ReFLX Athletic Work Shoes - Alloy Toe - GB00233Nautilus Women's White Metal Free Athletic Work Shoes - Composite Toe White , Bernie Mev Women's Bonnie Mary Jane Heel Pewter Mary JanesNautilus Nylon and Mesh Athletic Work Shoes - Composite Toe - N1750 , Nautilus Women's Blue ESD Athletic Work Shoes - Steel Toe - N1376J. Renee Women's Lucera Peep Toe Pump Pewter Synthetic Business Shoes , Nautilus Men's Lightweight Athletic Work Shoes - Composite Toe - N2117MODZORI Women's Aphina Slide Beige/Pearl/Gold Reversible SlidesNautilus Women's ESD Mary Jane Work Shoes - Steel Toe - N1687 , Bernie Mev Women's Charm Yael Mary Jane Endure Comfort Shoes , Easy Works Women's Appreciate Clog Tye-Dye Heart Patent Leather ClogsGeorgia Boot Women's Giant Romeo Work Shoes - G3060 , Nautilus Women's Suede Leather Athletic Work Shoes - Composite Toe - N1754 , Nautilus Women's ESD Slip On Work Shoes Brown 6.5 WCole Haan Women's Giselle Mid Espadrille Slide Riverside/Denim SlidesJ. Renee Women's Malree Slingback Black Lizard Print Synthetic Comfort Shoes , Nautilus Women's Oxford Athletic Work Shoes - Safety Toe - N2157Ariat Women Women's Fatbaby Collection Western Cowboy Boot , Nautilus Women's Ergo Slip-On Work Shoes - Comp Toe - N210EMU Women's Jolie Slipper Silver Suede Scuffs , **New!** SAS Simplify Loafers Tripad Comfort Black Leather US 7M , Dansko Women's Shelly Clog Black Tumbled Pull Up Leather Clogs , Dansko Womens Sonja Cabrio Shoe Black Leather Size 41 M USAerosoles Women's East Wing Mule Light Tan Nubuck Comfort ShoesNautilus Women's ESD Athletic Safety Shoes - Steel Toe - 1779 , Dolce Vita Women's Maura Feather Mule Black Leather Mules , Bella Vita Women's Ros-Italy Slide Gold Italian Leather Slides ,

More Stories

3600565 LTSPBTT50 Women's Shoes Size 7 M Black Leather Boot H.S. TraskWOMENS UNBRANDED OSTRICH PRINT COWBOY LEATHER GRAYISH BOOTS SIZE 6.5New CHASE + CHLOE Women Solid Black Knee Boot Back Detail Side Zip Size: 8.5M , Anthro Shoes KELSI DAGGER HUETTE WEDGE BOOTIES Leopard Calf Hair Ankle Boots 8 M , Black 1.5" Low Hidden Wedge Heel Comfortable Sexy Knee Boot Side Bow Size 9 , Leather Shoes Thigh length Womens High Heel Boots Ladies Party plus size 5 -16Madison Harding Anthropologie Silver Leather Hi Wedge Oxford Bootie Women US 9.5Womens Hunter Original Tall rainboots rain boots Gray rubber 8 high gloss , Aldo Yoania Open Toe Mesh Vamp Clear Heel Above Ankle Bootie Bone Women's Sz 10 , Merrell Tremblant Pull-On Polar Boot - Women's Size 6 M, Espresso , Calvin Klein Florine Boots - Women's Size 8, Black , Hondo Women's Size 5 Exotic Black Cherry Leather Western Boots , A2 by Aerosoles Womens in Between Ballet Flat- Pick SZ/Color. , Prada 40 9.5 M Black Patent Leather Logo Bow Ballet Flats ItalyAK Anne Klein Sport 25029122 Womens Glinda Velvet Ankle- Choose SZ/Color.Ladies Casual Rieker Flat Shoes L1751Dansko Blue Vegan Veda Canvas Clogs Sneakers Size 39 USTods Leather black shoes loafers made in Italy 8Jimmy Choo Grace Crystal-Embellished Leather Ankle-Wrap Ballet Flats Sz 36/6NEW $840 CELINE Leather Skate Slip On Trainers Sneakers - Yellow - Size 38 1/2Prada womens leopard - print patent leather slipper - SZE 37 NIBCharles by Charles David Women's Dean Strap Flat Cabernet/Black Velvet/SmoothTrotters Women's Arnello Ballet Flat Navy Crocodile Size 10.0 z9pr , NEW AXIGN MEDICAL FOOTWEAR WOMENS HAWTHORN DIABETIC ARTHRITIS RELIEF SHOESNike Zoom Strike 2 Running Mink Brown/Particle Beige/Celestial Teal AO1913 201 , Women's Nike Air Max 2012 training running shoes size 8 , Women's Nautica Regatta Riding Boots, Black Boots , IKRUSH Women's Sara Faux Suede Studded Ankle Boots Size in Black Size 8 , NEW LADIES Black Flat Round Toe Frill Mid-Calf Boot Size 7.5Air Jordan 1 Retro Low No Swoosh AO1935 109 Ivory Sail Women 5 - 12 Ship Now ,

Nautilus 27010 Women's Blue and Green Athletic Toe Work Shoes - Blue Composite Toe - N2154 ddd4acf -

Comfort Shoes